Article 5.--CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS
58a-502.Spendthrift provision.(a) A spendthrift provision is valid.
(b) A term of a trust providing that the interest of a beneficiary is heldsubject to a "spendthrift trust," or words of similar import, is sufficient torestrain both voluntary and involuntary transfer of the beneficiary's interest.
(c) A beneficiary may not transfer an interest in a trust in violation of avalid spendthrift provision and, except as otherwise provided in this article,a creditor or assignee of the beneficiary may not reach the interest or adistribution by the trustee before its receipt by the beneficiary.
(d) Whether or not a trust contains a spendthrift provision, a creditor of abeneficiary may not compel a distribution that is subject to the trustee'sdiscretion even if: (1) The discretion is expressed in the form of a standardfor distribution; or (2) the trustee has abused the discretion.
(e) This section does not limit the right of a beneficiary to maintain ajudicial proceeding against a trustee for an abuse of discretion or failure tocomply with a standard for distribution.
History: L. 2002, ch. 133, § 41;L. 2004, ch. 158, § 7; July 1.
Article 5.--CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS
58a-502.Spendthrift provision.(a) A spendthrift provision is valid.
(b) A term of a trust providing that the interest of a beneficiary is heldsubject to a "spendthrift trust," or words of similar import, is sufficient torestrain both voluntary and involuntary transfer of the beneficiary's interest.
(c) A beneficiary may not transfer an interest in a trust in violation of avalid spendthrift provision and, except as otherwise provided in this article,a creditor or assignee of the beneficiary may not reach the interest or adistribution by the trustee before its receipt by the beneficiary.
(d) Whether or not a trust contains a spendthrift provision, a creditor of abeneficiary may not compel a distribution that is subject to the trustee'sdiscretion even if: (1) The discretion is expressed in the form of a standardfor distribution; or (2) the trustee has abused the discretion.
(e) This section does not limit the right of a beneficiary to maintain ajudicial proceeding against a trustee for an abuse of discretion or failure tocomply with a standard for distribution.
History: L. 2002, ch. 133, § 41;L. 2004, ch. 158, § 7; July 1.
Article 5.--CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS
58a-502.Spendthrift provision.(a) A spendthrift provision is valid.
(b) A term of a trust providing that the interest of a beneficiary is heldsubject to a "spendthrift trust," or words of similar import, is sufficient torestrain both voluntary and involuntary transfer of the beneficiary's interest.
(c) A beneficiary may not transfer an interest in a trust in violation of avalid spendthrift provision and, except as otherwise provided in this article,a creditor or assignee of the beneficiary may not reach the interest or adistribution by the trustee before its receipt by the beneficiary.
(d) Whether or not a trust contains a spendthrift provision, a creditor of abeneficiary may not compel a distribution that is subject to the trustee'sdiscretion even if: (1) The discretion is expressed in the form of a standardfor distribution; or (2) the trustee has abused the discretion.
(e) This section does not limit the right of a beneficiary to maintain ajudicial proceeding against a trustee for an abuse of discretion or failure tocomply with a standard for distribution.
History: L. 2002, ch. 133, § 41;L. 2004, ch. 158, § 7; July 1.
